The Great Moderation Consensus Among Macroeconomists Is Described by All

question 199

Multiple Choice

The Great Moderation consensus among macroeconomists is described by all of the following EXCEPT that:

• A)monetary policy should play the main role in stabilization policy.
• B)the central bank should be independent of politics.
• C)discretionary fiscal policy should be used sparingly.
• D)monetary policy is the only way to get out of the liquidity trap.

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Definitions:

Net Sales

Net sales represent the revenue a company generates from its business activities, after subtracting returns, allowances for damaged goods, and discounts.

Gross Profit

The financial metric representing the difference between a company's net sales and the cost of goods sold, indicating the basic profitability of products.

Net Income

A company's financial gain after removing expenses and tax liabilities from its total revenue.

Gross Profit Rate

Gross profit expressed as a percentage, by dividing the amount of gross profit by net sales.